Latvia, Railways, Transport

International Internet Magazine. Baltic States news & analytics Saturday, 15.08.2020, 10:13

Talis Linkaits: Management of Latvijas Dzelzcels has to ensure new business model's compliance with the law

BC, Riga, 28.07.2020.Print version
The management of Latvijas Dzelzcels (LDz) national rail company have to work out a new business model for the company that would be in line with all legislative requirements, Transport Minister Talis Linkaits (New Conservative Party) said today in an interview to Latvian Television cites LETA.

"It is the task of the company's management to develop solution that would conform to the law," the minister said, commenting previous reports that the rail company's new business model, which envisages expanding the range of services, including also freight forwarding by sea and road, as well as services of terminals and warehouses, might breach the State Administration Structure Law.

The transport minister underlined that it is extremely important for LDz to attract freight. "Of course, all competition laws have to be obeyed, but at the same time, it is important for us to attract freight to railway. Virtually every ton is important, which is why it is important that LDz focuses on the client and understands the clients' needs," said Linkaits, noting that the planned expansion of operations would enable the company to concentrate more on domestic freight.

The minister also noted that the market is showing some signs of recovery, although coal shipping by rail is still negligible, and the amount of oil products is dropping as well. "It's not that LDz has nothing to do at all," said Linkaits. 

As reported, LDz plans to expand the range of services under its new business model by adding freight forwarding by sea and road, as well as services of terminals and warehouses. The Competition Council warned that the plan might not be in line with the State Administration Structure Law.

It has also been reported that in the first half of 2020 shipping of rail freight in Latvia fell by 47.2% from the same period a year ago to 11.563 mln  tons. International rail freight was down 48.7% from the first half of 2019 to 10.925 mln tons in January-June 2020, whereas domestic rail freight grew 5.7% to 638,000 tons.

Latvijas Dzelzcels is a state-owned railway company. Latvijas Dzelzcels group comprises the parent company, Latvijas Dzelcels, and six subsidiaries: LatRailNet, LDz Cargo, LDz Infrastruktura, LDz Ritosa Sastava Serviss, LDz Apsardze, and LDz Logistika.

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